Group 5

1. Analyze the effects of Contemporary Issues such as Migration, Fluctuation in the

Exchange rate, and Oil Price increase on purchasing power of the people.
 Migration- Force people who migrate to buy those things that they don’t even need (Panic
Buying).

 Fluctuation in the exchange rate- Affects purchasing power in relation to other currencies…
Some businesses may pass their higher cost on to the customer, contributing inflation and
diminished domestic purchasing power.

 Oil price increase- The immediate effect of the oil price shock is the increased fuel cost. On the
other hand, inflation implies a fall in the purchasing power of the people; in short, oil price
fluctuation has adverse effects on the economy (Jose De Gregorio et. Al. 2007)

2. Application of supply and demand and concerning the Philippine Housing shortage and
the real estate boom;

 Supply and demand is never an easy thing to measure in the real estate market. Some of the
factors that influence housing demand include lower interest rates or borrowing costs.
-When interest rates are low, people are generally willing to take on more debt.
Reference: https://www.investopedia.com>ask

 The housing market relies very heavily on supply and demand.

 Housing demand and low supplies normally cause prices to rise.
 Prices drop when there is low demand and a larger supply of homes on the market.
 Low interest rates generally impact demand, while natural disasters, changing lifestyles, and the lack of
available lots affect supplies.
 Supply and demand work against one another until the point at which a property's equilibrium
price is reached.
Reference: https://www.investopedia.com/ask/answers/040215/how-does-law-supply-and-
demand-affect-housing-market.asp

Prepared by: Dollosa, Angelika

Garcia, April
Lanzar, Anamay
Baloya, Arianne
Pula, Red
Siason, Kristine
Grade 12-ABM D